⇒ U.S. stocks closed moderately lower on Tuesday, with investors holding off from big bets a day before the Federal Reserve decides whether to taper its bond-buying program that’s boosted stocks. The SandP 500 fell 5.54 points, or 0.3%, to 1,781. The benchmark index has retreated in five out of the past six sessions. The Dow Jones Industrial Average dipped 9.31 points, or less than 0.1%, to 15,875.26. The Nasdaq Composite lost 5.84 points, or 0.1%, to 4,023.68 – Source: Marketwatch

⇒ Asian shares tiptoed higher on Wednesday as investors waited to hear when the U.S. Federal Reserve will begin unwinding its stimulus campaign, a major driver for global risk assets in recent years. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.2 percent, though still faced resistance at its 200-day moving average. On Tuesday, it trimmed early gains to end flat – Source: Reuters

⇒ Fund managers are looking past Wednesday and into the new year for a Fed taper — all the way out to March. That’s the view of managers polled by Bank of America Merrill Lynch in its monthly survey. Just 11% of fund managers are braced for a potential taper this week — 32% expect the move in January and 42% in March. Even so, tapering seems to be causing no alarm among managers as 71% expect a stronger economy – Source: Marketwatch

⇒ The yen dropped versus its 16 major peers after data showed the nation reported its biggest trade deficit on record, eroding the nation’s haven appeal. “The yen will remain weak,” said Daisuke Karakama, a Tokyo-based market economist at Mizuho Bank Ltd. “The trade deficits are big enough to keep the currency from strengthening.” The yen fell 0.3 percent to 102.98 per dollar at 12:26 p.m. in Tokyo, after rising 0.7 percent in the past three sessions. It touched 103.92 on Dec. 13, the weakest level since October 2008. Japan’s currency dropped 0.3 percent to 141.82 per euro – Source: Bloomberg

⇒ Australia’s dollar gained against all its major peers amid speculation the Reserve Bank may not cut interest rates further after Governor Glenn Stevens said there are signs that loose policy is supporting spending. The Aussie rose from a four-month low per U.S. dollar as the Federal Reserve weighs whether to reduce the pace of its bond-buying program, which has buoyed asset prices around the world. The Australian dollar added 0.2 percent to 89.13 U.S. cents as of 2:17 p.m. in Sydney from yesterday, when it reached 88.82, the lowest since Aug. 5. It advanced 0.2 percent to NZ$1.0782 after earlier touching NZ$1.0749, the weakest since Oct. 2008 – Source: Bloomberg

⇒ Gold returned to positive territory on Wednesday, ahead of an announcement later in the day from the Federal Reserve as to whether the central bank will keep its pedal pressed to the floor with its bond-buying program. Ahead of the decision Wednesday, gold for February delivery added $2.50, or 0.2%, to $1,233.60 an ounce – Source: Marketwatch

⇒ The Bloomberg Dollar Index was little changed for a second day at 1,016.15 before the Fed decision. There’s about a 60 percent chance the Fed will announce a reduction in its $85 billion monthly asset-purchase program today, according to Mohamed El-Erian, chief executive officer of Pacific Investment Management Co. Thirty-four percent of economists surveyed by Bloomberg Dec. 6 predicted the Fed will start reducing purchases this month, while 26 percent forecast January and 40 percent said March – Source: Bloomberg

⇒ Japan’s trade deficit widened in November, as the growth in imports outpaced those for exports, according to Finance Ministry data out Wednesday. Japan’s exports rose 18.4% from a year earlier, outpacing an average forecast for a 17.3% increase from a Dow Jones Newswires survey of economists. Imports were up 21.1%. The resulting trade gap totaled 1.293 trillion yen ($12.6 billion), widening from ¥1.093 trillion the previous month, though below a projected ¥1.336 trillion deficit tipped in the Dow Jones Newswires poll – Source: Marketwatch

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